Refer to the facts in Problem 33 and assume that the office building purchased in January 2019 and the car purchased in 2019 were both sold in June 2020. How much depreciation can be claimed as a deduction on these two assets in 2020 for the portion of the year they were held by the taxpayer? Assume MACRS depreciation is used.

Problem 33

Compute MACRS depreciation for the following qualified assets for the calendar years 2019 and 2020: (Ignore bonus depreciation and the Section 179 deduction.)

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Asset Business Year Purchased Cost Salvage Value March 2019 $85,500 $10,000 equipment (7-year property) Car May 2019 14,000 1,000 Office furniture July 2019 18,050 3,000 (7-year property) Building January 2019 185,000 5,000 (Office)